A recent survey from LendingTree.com found there are multiple reasons why Americans would choose to purchase an RCFE home instead of renting. Some of the most popular non-financial reasons given include:
- The flexibility to make the space your own
- The pride RCFE ownership offers
- The sense of stability
In the same survey, 41% of respondents say they’d rather own a home than rent because of the unique way homeownership builds wealth over time.
And experts agree – the RCFE you own is an important tool for building your net worth. Here’s what many of those experts have to say about building long-term financial stability through homeownership.
According to the National Association of Realtors (NAR):
“Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2 accumulated housing wealth of $349,258, . . .”
Mark Fleming, Chief Economist at First American, points out that an (RCFE) home is truly a one-of-a-kind asset. It’s the only asset that’s both an investment and a place for you to operate your business.
“The major financial advantage of (RCFE) homeownership is the accumulation of equity in the form of house price appreciation. . . . We won’t always have 17% house price appreciation, but we have to take into account the fact that the home that you’re owning is an equity-generating or wealth-generating asset.”
RCFE homeowners can leverage the wealth they generate in several ways throughout their life. Tapping into accumulated equity has long been used to pay for the cost of an education, to start another RCFE business, or to fund various other expenses.
The Joint Center of Housing Studies at Harvard points out:
“. . . by paying down mortgage principal each month and participating in the long-term appreciation of home values, a family can build wealth that can be used for retirement or other needs, including helping the next generation.”
Bottom Line
With RCFE home prices expected to continue to appreciate in the coming years, RCFE homebuyers have an opportunity to start the long-term wealth-building process right now. Call us TODAY at 949-397-4506 if you’re ready to begin your journey on the path to becoming a RCFE homeowner.
Michelle (949) 397- 4506 & Melvyn (949) 500-3630
